Air fares are likely to fall further in 2016 due to the recent drop in oil prices which has knocked around $24 billion off the air industry’s annual fuel bill, said IATA.

Crude oil prices dropped to a 12-year low in January, due to concerns over excess supply and lower demand.

IATA said global fares fell 5% in 2015 while growth in passenger traffic was its strongest for five years.

“Recent falls in oil prices mean that further falls in air fares are likely to be seen in 2016 as hedging contracts unwind, which will help to stimulate demand over the year,” said the airline association.